Leonie Barrie, just-style.com September 19, 2012 Moves last week by the Indian government to open the country's multi-brand retail sector to foreign investment have been hailed as everything from a "historic decision" to a "big bang" reform. But observers also warn that far from reviving economic growth, the plans come with so many restrictions that they may well deter overseas firms from investing in the country. And the prospect of strong opposition from within the ruling coalition may also mean the measures have to be abandoned before they have a chance to get off the ground. After all, relaxation of…
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Written By Devangshu Dutta Among consumer sectors, very few can match up to fashion in terms of its global nature. Despite food having led the way in global trade through spices, it is the fashion sector that led the global march of brands. As the economies in Europe and Asia recovered and grew, historical colonial linkages as well as modern culture-vehicles such as movies carried images of what was cool in the benchmark culture. Fashion brands were the most identifiable representation of cool. India itself has known international fashion and luxury brands for several decades. From the mass footwear brand…
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Vandana, The Week September 18, 2012 There was a time when the Murjani Group was synonymous with luxury retail in India. It offered Indians a taste of luxury by bringing in iconic brands such as Gucci, Jimmy Choo, Bottega Veneta and La Perla. However, the “luxury powerhouse” exited all its joint ventures in just about two years, and has now moved to premium lifestyle brands. What went wrong? “Imbalance between franchisers and franchisees is one of the biggest challenges for luxury retail in India,” says Mohan Murjani, the group's chairman. Experts note that though margins are quite high in luxury…
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Nupur Anand, Daily News & Analysis (DNA) Mumbai, September 17, 2012 Trousers at 80% off, a pair of Reebok sneakers for 60% less, buy two shirts and get four free. Discounted apparel stores that include Cantabil, Koutons, Vishal Retail and Loot had created a buzz with such too-good-to-believe offers when they first appeared on the retail scene a few years back. The deals, available round the year, were good enough to tempt even the tight-fisted shoppers. And with inflation pushing up apparel prices, these firms were expecting a windfall and long queues before their stores. However, things haven't turned out…
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Nupur Anand, Daily News & Analysis (DNA) Mumbai, September 15, 2012 Indiaโs retail industry, which is pegged at US$450 billion, could expand manifold with the opening up of foreign direct investment (FDI) on Friday. Currently, the so-called modern trade -- or retail chains โ have only 5% share of that pie. The catch, however, is that the 51% FDI decision has been left to the state governments. Thatโs where implementation problems will arise, said experts. Trinamool Congress (TMC) that rules West Bengal has given a 72-hour notice to the government to change their decision. TMC, which is a key ally…
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